Assume that a $2,000-bond issued in 2020 pays $180 in interest each year. What is the current yield on the bond if it can be purchased for $1,800?

If a If a bond pays $90 interest annually, matures after ten years and costs $1,100. What is the current Yield.

You pay $25.00 for a bond which can be redeemed in 20 years for $50.00. What annual ratedoes this bond pay?

Use the following tables to calculate the present value of a $789,000 @ 6%, 6-year bond that pays $47,340 interest annually, if the market rate of interest is 7%. Round to the nearest dollar.

You buy a bond that pays annual interest payments of 7% of the bond’s face value of $1000.  You initially pay $950 for the bond.  You receive an annual interest payment after one year, then sell the bond for $880.  What is your total rate of return on the investment, expressed as a percentage of the purchase price?

a. Assuming you purchased the bond for $350 what rate of return would you earn if you held the bond for 25 years until it matured with a value $1000? a. Rate of return____% b. Suppose under the terms of thebond you could redeem the bond in 2024. DMF agreed to pay an annual interest rate of 1.4 percent until the date. How much would the bond be worth at that time? b. Bond value_____ c. In 2024 instead of cashing in the bond for its then current value you decide to hold the bond until it mature in 2043. What annual rate of return will you earn over the last 19 years? c. Rate of return___%

What is the yield to maturity on a $1,000-face-value discount bond maturing in one year that sells for $800?

A one-year premium bond with a face value of $10,000 has been purchased for $11,150. What is the yield to maturity? What is the yield on a discount basis?

Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $750, calculate the interest rate that the bond would yield to a bond buyer. Show all work.

A bond: pay $75 each year in interest, and a $1,000 payment at maturity. The $1,000 is called? A) couponB) face valueC) discountD) yield